The document provides an overview and outlook of the leveraged finance market in 2012 and 2013. It discusses record high issuance volumes of high-yield bonds and leveraged loans in 2012. For 2013, analysts forecast more moderate returns compared to 2012 and increased risks for lower-rated debt. While high-yield bond returns are expected to be limited, some investors believe leveraged loans may outperform if interest rates rise. CLO issuance is also expected to rise again in 2013 after a revival in 2012. Middle market lending is an area that may see increased activity. Overall, the market is viewed as more challenging in 2013 compared to recent years.
The document provides a summary of major risk-related events that occurred throughout 2012, including increases and decreases in corporate hedging positions across different industries and asset classes in response to market volatility. It also lists the top risk events by month that impacted markets and reviews portfolio performance based on factors like industry, region, and investment style. The outlook for risk in 2013 from corporate executives is also examined.
This document summarizes discussions from a 2008 distressed and turnaround investment forum. It covers the state of the distressed industry after the financial crisis, known and potential after-effects, and predictions of economic forecaster Nouriel Roubini about the impending housing and credit market collapse. Sections analyze the meltdowns in 1990, 2000, and 2008; industries and financial institutions affected; major bank write-offs and hedge fund failures; and an extensive list of collapsed mortgage lenders. The forum aimed to explore investment opportunities arising from the crisis aftermath.
Fl 2d Distressed Resi Real Estate Symp 17nov08spodvin
This was an incredible event -- the Florida Second Distressed Real Estate Symposium. I moderated one panel discussion on which Stephen Rosenberg, member of the North Carolina Banking Commission and I debated the impact of the shadow inventory on absorption, sales prices and rental rates.
GCC bond markets have grown substantially in recent years, with $233 billion in debt securities outstanding representing 17% of regional GDP. Most bonds are denominated in US dollars due to currency pegs. Growth has been driven by both government and corporate issuers as alternative to declining bank loans. Looking ahead, bond issuance is expected to continue rising to fund large infrastructure projects and company expansions in the growing GCC economies.
Fitch Ratings believes the Polish corporate bond market may revive in 2010 as bond issuance is an attractive funding option for large corporates compared to bank loans. Several Polish power and oil & gas companies plan sizeable bond issues in 2010 to fund capital expenditures. However, bank loans will remain the largest source of corporate debt. The domestic bond market has become more selective, so weaker companies may have difficulty issuing bonds. A new trading platform could increase liquidity and transparency in the long run.
6th Western Borrowers N Investors Mezz Loans And Distress Debt 26 March09spodvin
The document is an agenda for the "Western Borrowers & Investors Forum on Real Estate Mezzanine Loans & Distressed Real Estate Debt" event on April 27-28, 2009. It outlines several panel discussions that will take place, including ones on scrutinizing government bailout programs and their impact on real estate mezzanine financing, the dire global economic outlook, and nationalizing banking systems. The moderator and panelists are also listed.
CIS Properties LLC is offering up to $1 billion in preferred LLC interests with dividends of 7-15% paid quarterly. It will invest in distressed commercial real estate, loans, and CMBS in Russia and CIS countries. It has experienced management and strategic partnerships with Colliers International and RBR LLC for due diligence and deal sourcing. The minimum investment is $250,000 and the expected holding period is 4-6 years.
freddie mac Investor Presentation – Freddie Mac Update finance6
This document summarizes a Freddie Mac report on the housing market and Freddie Mac's business. It provides an overview of Freddie Mac, discusses key provisions of new housing legislation, and analyzes trends in the U.S. housing market such as declining home prices, high inventories, and a drop in mortgage originations. It also reviews Freddie Mac's credit guarantee and investment management businesses.
The document provides a summary of major risk-related events that occurred throughout 2012, including increases and decreases in corporate hedging positions across different industries and asset classes in response to market volatility. It also lists the top risk events by month that impacted markets and reviews portfolio performance based on factors like industry, region, and investment style. The outlook for risk in 2013 from corporate executives is also examined.
This document summarizes discussions from a 2008 distressed and turnaround investment forum. It covers the state of the distressed industry after the financial crisis, known and potential after-effects, and predictions of economic forecaster Nouriel Roubini about the impending housing and credit market collapse. Sections analyze the meltdowns in 1990, 2000, and 2008; industries and financial institutions affected; major bank write-offs and hedge fund failures; and an extensive list of collapsed mortgage lenders. The forum aimed to explore investment opportunities arising from the crisis aftermath.
Fl 2d Distressed Resi Real Estate Symp 17nov08spodvin
This was an incredible event -- the Florida Second Distressed Real Estate Symposium. I moderated one panel discussion on which Stephen Rosenberg, member of the North Carolina Banking Commission and I debated the impact of the shadow inventory on absorption, sales prices and rental rates.
GCC bond markets have grown substantially in recent years, with $233 billion in debt securities outstanding representing 17% of regional GDP. Most bonds are denominated in US dollars due to currency pegs. Growth has been driven by both government and corporate issuers as alternative to declining bank loans. Looking ahead, bond issuance is expected to continue rising to fund large infrastructure projects and company expansions in the growing GCC economies.
Fitch Ratings believes the Polish corporate bond market may revive in 2010 as bond issuance is an attractive funding option for large corporates compared to bank loans. Several Polish power and oil & gas companies plan sizeable bond issues in 2010 to fund capital expenditures. However, bank loans will remain the largest source of corporate debt. The domestic bond market has become more selective, so weaker companies may have difficulty issuing bonds. A new trading platform could increase liquidity and transparency in the long run.
6th Western Borrowers N Investors Mezz Loans And Distress Debt 26 March09spodvin
The document is an agenda for the "Western Borrowers & Investors Forum on Real Estate Mezzanine Loans & Distressed Real Estate Debt" event on April 27-28, 2009. It outlines several panel discussions that will take place, including ones on scrutinizing government bailout programs and their impact on real estate mezzanine financing, the dire global economic outlook, and nationalizing banking systems. The moderator and panelists are also listed.
CIS Properties LLC is offering up to $1 billion in preferred LLC interests with dividends of 7-15% paid quarterly. It will invest in distressed commercial real estate, loans, and CMBS in Russia and CIS countries. It has experienced management and strategic partnerships with Colliers International and RBR LLC for due diligence and deal sourcing. The minimum investment is $250,000 and the expected holding period is 4-6 years.
freddie mac Investor Presentation – Freddie Mac Update finance6
This document summarizes a Freddie Mac report on the housing market and Freddie Mac's business. It provides an overview of Freddie Mac, discusses key provisions of new housing legislation, and analyzes trends in the U.S. housing market such as declining home prices, high inventories, and a drop in mortgage originations. It also reviews Freddie Mac's credit guarantee and investment management businesses.
The document discusses the impact of the global economic slowdown on the healthcare sector in Asia. It states that while healthcare in Asia will be affected, the impact may not be as severe as in developed countries. The economic crisis has put pressure on healthcare companies in the US and EU to cut costs, which could lead them to expand into developing markets like Asia. The slowdown is expected to have varying effects on different parts of the healthcare industry in Asia in 2009.
Reliant Resources recently refinanced $6.2 billion in debt to stabilize its operations during a difficult time for the energy industry. Some critics argue these refinancings merely delay inevitable problems by increasing debt levels. Reliant extended $5.9 billion in bank debt and added a $300 million credit line. However, Reliant's CFO states the goal is to improve its credit rating by paying down debt and eventually refinancing on an unsecured basis rather than relying on bank loans. While money is available from distressed debt investors, banks continuing to roll over loans is preventing capital from circulating in the market.
This document provides an analysis of DR Horton's strong first quarter 2010 results compared to its competitors. The author argues that DR Horton's "spec building" strategy, where it builds homes before finding buyers, gives it advantages over competitors that focus on building to order. DR Horton is well positioned to benefit from changes in the homebuilding industry as the housing crisis has made bank financing unavailable for many smaller builders. The author believes DR Horton has been consistently undervalued by the market despite its superior operating performance and growth potential.
This document provides a summary of recent economic and market events from around the world. It discusses issues in Europe including the need for a pan-European banking union and ongoing problems in Spain and Greece. It also mentions slowing growth in China and the US, as well as actions the US Federal Reserve and European Central Bank may take in response. The editorial recommends Bombardier Inc. as a buy based on its attractive valuation and potential for growth.
Merrill Lynch Global Power and Gas Conferencefinance14
This document summarizes Merrill Lynch's presentation at the 2008 Power & Gas Leaders Conference in New York on September 23, 2008. Some key points:
- Exelon is well positioned financially, with strong operations, a robust hedging program, and ample liquidity.
- Exelon's 2009 operating EPS is expected to be flat compared to 2008, as higher earnings from ComEd offset lower earnings from Exelon Generation.
- Exelon is uniquely positioned for sustainable value through its large nuclear fleet, competitive markets, and opportunities for growth.
Investing for Physicians | 4th Quarter Market ReviewLFGmarketing
The document summarizes global market performance for the fourth quarter of 2012. International developed stocks posted strong returns of 5.93%, while emerging markets stocks returned 5.58%. US stocks saw more modest gains of 0.25%. The report provides an overview of asset class performance including international stocks, emerging markets stocks, real estate investment trusts and bonds. It also includes a timeline of major economic and political events that occurred during the quarter.
Mc kinsey on cooperatives cooperative banks at the cusp of a new eraInformaEuropa
1. Emerging markets will drive the majority of global banking revenue and growth over the next decade as their economies and middle classes expand rapidly.
2. Developed economies are deleveraging and struggling with high unemployment and public debt, requiring fiscal tightening that will slow their economic growth.
3. Banks will have to compete on a global scale for market share, with emerging market players driving banking sector growth as emerging markets represent over half of worldwide banking revenues by 2020.
State of the Commercial Real Estate Market Chicago April 2012EDR
The document summarizes 10 key trends in the commercial real estate market and forecasts for 2012. It finds that property transactions are on an upward trajectory, with multifamily attracting the most demand. Commercial mortgage-backed securities are recovering after a dry spell in 2011. Lending from banks, life insurers, and government-backed entities is thawing. Risk aversion increased in 2011 but commercial real estate investment trusts have large war chests for acquisitions. Phase I environmental site assessments increased 7% in 2011 but growth varied significantly by metro area. The forecast anticipates a busy year for commercial real estate with both positive and uncertain forces, including maturing loans, available equity, and gradual increases in lending originations.
- Freddie Mac's 2007 annual report summarizes the company's activities and financial results for the year.
- Freddie Mac faced significant challenges in 2007 due to the downturn in the housing market, including losses of $3.1 billion. However, a large portion of the losses were due to mark-to-market accounting rules rather than economic losses.
- Despite the difficulties, Freddie Mac continued its mission of providing liquidity and stability to the U.S. housing market. The company helped many families avoid foreclosure and expanded affordable housing programs.
The document discusses the financial meltdown and its impact on financial markets. It provides terminology related to complex financial products like collateralized debt obligations and mortgage-backed securities that contributed to the crisis. It also outlines the historical development of securitized mortgage lending, going from primarily on-balance sheet lending in the 1930s-1980s to increasing securitization after 1980. This led to a large portion of home loans being securitized by the late 2000s, contributing to the subprime crisis.
1. The document discusses subprime lending, which offers loans at above-prime interest rates to borrowers with poor credit histories.
2. It describes various types of subprime mortgages like interest-only loans and adjustable rate loans.
3. It outlines the participants in the subprime market like lenders, brokers, and investors and discusses benefits to each group.
Here are three key things to consider when evaluating stocks:
1. Competitive advantages: Look for companies that have sustainable competitive advantages known as "economic moats" that allow them to fend off competition and earn above-average returns on invested capital over the long run. There are five main sources of economic moats: intangible assets, switching costs, network effects, cost advantages, and efficient scale.
2. Management team: A great management team is able to execute a company's business strategy and make decisions that enhance shareholder value over time. Consider a management's track record, compensation structure, and whether their interests are aligned with shareholders.
3. Valuation: Determine a company's fair value based on
Credit risks on uk commercial property lendingmissfaa
This document discusses the risks associated with commercial property lending in the UK. It notes that commercial real estate (CRE) lending remains high at £243 billion as of 2010, accounting for around 50% of UK banks' exposure to non-financial firms. Write-offs are expected to rise as property prices remain depressed, with indices down over 40% from 2007 levels. Around £34 billion of loans are in breach of financial covenants and £20 billion are in payment default. The document examines risks like rising arrears, falling collateral values, and breaches of loan-to-value covenants. It outlines banks' strategy of forbearance to restructure loans and avoid losses, but notes this is a temporary
*2012 Fundraising overview
*2013 Funds expected and LP commitment plans
*Buyout and venture deal-making review
*Exits: a round-up of trade sales, secondary buyouts and IPOs
*Views from the industry
Please find attached our annual review with our compliments. This is a sample of the high quality content our subscribers receive each week. Take your free trial at bloombergbriefs.com
“Ironically, if central bank ‘financial repression’ continues to work and increases
economic growth, we will likely see markedly higher bond yields by year-end
following intervention by the Fed to rein in stimulus as unemployment falls.“
1) The document discusses the events leading up to the 2007-2008 financial crisis, including the rise of subprime mortgages, collateralized debt obligations (CDOs), and credit default swaps (CDS).
2) It describes how losses in the subprime mortgage market led to the collapse of Bear Stearns in 2008 and how the Federal Reserve intervened to prevent further damage.
3) Key events that exacerbated the crisis included the bankruptcies of Lehman Brothers and the rescue of insurance giant AIG by the Federal Reserve.
Hi,Please find below the article on dividend and questions to answ.docxfideladallimore
Hi,
Please find below the article on dividend and questions to answer:
Report Information from ProQuest
April 16 2015 20:42
John B. Coleman Library
Table of contents
1. Borrowing for Dividends Raises Worries
Document 1 of 1
Borrowing for Dividends Raises Worries
Author:
Rappaport, Liz
ProQuest document link
Abstract:
Sean Maroney, director of investor relations at TransDigm, says the "stability of our business, high profit margins and consistent cash flow" give the company "the ability to support this level of leverage."
Links:
Base URL to Journal Linker:
,
Click here to order from Interlibrary Loan Illiad
Full text:
Corrections & Amplifications
Dex Media Inc. borrowed money in 2003 to pay a dividend to its private-equity owners, including Carlyle Group and Welsh, Carson, Anderson & Stowe. A Monday Money & Investing article incorrectly identified Dex Media's private-equity sponsors as Thomas H. Lee Partners, Bain Capital and funds managed by Blackstone Group.
(WSJ October 6, 2009)
Rock-bottom interest rates and thawed credit markets are emboldening some companies to use bond-sale proceeds to go on the offensive, even if that means rewarding shareholders at the expense of bondholders.
The nascent trend is controversial because corporate borrowers are sinking themselves deeper into debt to pay out special dividends, buy back stock or finance acquisitions. While such moves were all the rage during the credit boom, most corporate-bond offerings during the recession have been used to reduce debt or stockpile cash.
Eric Felder, global head of credit trading at Barclays Capital, says the lure of low rates and companies' stables of cash increases "the risk of non-bondholder friendly events."
Last week's sale of $425 million of bonds by aircraft-parts manufacturer TransDigm Group Inc. is one of the back-to-the-past corporate-bond deals causing concern among some analysts. More than $360 million of the proceeds will be used to pay a special cash dividend to shareholders and management of the Cleveland company.
The added debt increased TransDigm's borrowings to 4.3 times its earnings before interest and taxes, compared with 3.1 times before last week's deal. The expected dividend of $7.50 to $7.70 a share is equal to nearly all of the net income that TransDigm reported since the end of fiscal 2003, according to Moody's Investors Service.
Moody's said the dividend "illustrates the company's aggressive financial policy." Moody's gave the new debt a junk rating of B3, even though the ratings firm said TransDigm's "strong operating performance will enable the company to service the increased debt level."
Sean Maroney, director of investor relations at TransDigm, says the "stability of our business, high profit margins and consistent cash flow" give the company "the ability to support this level of leverage."
Borrowing from bondholders to pay shareholder dividends is "a hallmark of an earlier credit era," Jeffrey Rosenberg, head of credit strate.
Mercer Capital's Bank Watch | May 2022 | Specialty Finance AcquisitionsMercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
The document discusses the impact of the global economic slowdown on the healthcare sector in Asia. It states that while healthcare in Asia will be affected, the impact may not be as severe as in developed countries. The economic crisis has put pressure on healthcare companies in the US and EU to cut costs, which could lead them to expand into developing markets like Asia. The slowdown is expected to have varying effects on different parts of the healthcare industry in Asia in 2009.
Reliant Resources recently refinanced $6.2 billion in debt to stabilize its operations during a difficult time for the energy industry. Some critics argue these refinancings merely delay inevitable problems by increasing debt levels. Reliant extended $5.9 billion in bank debt and added a $300 million credit line. However, Reliant's CFO states the goal is to improve its credit rating by paying down debt and eventually refinancing on an unsecured basis rather than relying on bank loans. While money is available from distressed debt investors, banks continuing to roll over loans is preventing capital from circulating in the market.
This document provides an analysis of DR Horton's strong first quarter 2010 results compared to its competitors. The author argues that DR Horton's "spec building" strategy, where it builds homes before finding buyers, gives it advantages over competitors that focus on building to order. DR Horton is well positioned to benefit from changes in the homebuilding industry as the housing crisis has made bank financing unavailable for many smaller builders. The author believes DR Horton has been consistently undervalued by the market despite its superior operating performance and growth potential.
This document provides a summary of recent economic and market events from around the world. It discusses issues in Europe including the need for a pan-European banking union and ongoing problems in Spain and Greece. It also mentions slowing growth in China and the US, as well as actions the US Federal Reserve and European Central Bank may take in response. The editorial recommends Bombardier Inc. as a buy based on its attractive valuation and potential for growth.
Merrill Lynch Global Power and Gas Conferencefinance14
This document summarizes Merrill Lynch's presentation at the 2008 Power & Gas Leaders Conference in New York on September 23, 2008. Some key points:
- Exelon is well positioned financially, with strong operations, a robust hedging program, and ample liquidity.
- Exelon's 2009 operating EPS is expected to be flat compared to 2008, as higher earnings from ComEd offset lower earnings from Exelon Generation.
- Exelon is uniquely positioned for sustainable value through its large nuclear fleet, competitive markets, and opportunities for growth.
Investing for Physicians | 4th Quarter Market ReviewLFGmarketing
The document summarizes global market performance for the fourth quarter of 2012. International developed stocks posted strong returns of 5.93%, while emerging markets stocks returned 5.58%. US stocks saw more modest gains of 0.25%. The report provides an overview of asset class performance including international stocks, emerging markets stocks, real estate investment trusts and bonds. It also includes a timeline of major economic and political events that occurred during the quarter.
Mc kinsey on cooperatives cooperative banks at the cusp of a new eraInformaEuropa
1. Emerging markets will drive the majority of global banking revenue and growth over the next decade as their economies and middle classes expand rapidly.
2. Developed economies are deleveraging and struggling with high unemployment and public debt, requiring fiscal tightening that will slow their economic growth.
3. Banks will have to compete on a global scale for market share, with emerging market players driving banking sector growth as emerging markets represent over half of worldwide banking revenues by 2020.
State of the Commercial Real Estate Market Chicago April 2012EDR
The document summarizes 10 key trends in the commercial real estate market and forecasts for 2012. It finds that property transactions are on an upward trajectory, with multifamily attracting the most demand. Commercial mortgage-backed securities are recovering after a dry spell in 2011. Lending from banks, life insurers, and government-backed entities is thawing. Risk aversion increased in 2011 but commercial real estate investment trusts have large war chests for acquisitions. Phase I environmental site assessments increased 7% in 2011 but growth varied significantly by metro area. The forecast anticipates a busy year for commercial real estate with both positive and uncertain forces, including maturing loans, available equity, and gradual increases in lending originations.
- Freddie Mac's 2007 annual report summarizes the company's activities and financial results for the year.
- Freddie Mac faced significant challenges in 2007 due to the downturn in the housing market, including losses of $3.1 billion. However, a large portion of the losses were due to mark-to-market accounting rules rather than economic losses.
- Despite the difficulties, Freddie Mac continued its mission of providing liquidity and stability to the U.S. housing market. The company helped many families avoid foreclosure and expanded affordable housing programs.
The document discusses the financial meltdown and its impact on financial markets. It provides terminology related to complex financial products like collateralized debt obligations and mortgage-backed securities that contributed to the crisis. It also outlines the historical development of securitized mortgage lending, going from primarily on-balance sheet lending in the 1930s-1980s to increasing securitization after 1980. This led to a large portion of home loans being securitized by the late 2000s, contributing to the subprime crisis.
1. The document discusses subprime lending, which offers loans at above-prime interest rates to borrowers with poor credit histories.
2. It describes various types of subprime mortgages like interest-only loans and adjustable rate loans.
3. It outlines the participants in the subprime market like lenders, brokers, and investors and discusses benefits to each group.
Here are three key things to consider when evaluating stocks:
1. Competitive advantages: Look for companies that have sustainable competitive advantages known as "economic moats" that allow them to fend off competition and earn above-average returns on invested capital over the long run. There are five main sources of economic moats: intangible assets, switching costs, network effects, cost advantages, and efficient scale.
2. Management team: A great management team is able to execute a company's business strategy and make decisions that enhance shareholder value over time. Consider a management's track record, compensation structure, and whether their interests are aligned with shareholders.
3. Valuation: Determine a company's fair value based on
Credit risks on uk commercial property lendingmissfaa
This document discusses the risks associated with commercial property lending in the UK. It notes that commercial real estate (CRE) lending remains high at £243 billion as of 2010, accounting for around 50% of UK banks' exposure to non-financial firms. Write-offs are expected to rise as property prices remain depressed, with indices down over 40% from 2007 levels. Around £34 billion of loans are in breach of financial covenants and £20 billion are in payment default. The document examines risks like rising arrears, falling collateral values, and breaches of loan-to-value covenants. It outlines banks' strategy of forbearance to restructure loans and avoid losses, but notes this is a temporary
*2012 Fundraising overview
*2013 Funds expected and LP commitment plans
*Buyout and venture deal-making review
*Exits: a round-up of trade sales, secondary buyouts and IPOs
*Views from the industry
Please find attached our annual review with our compliments. This is a sample of the high quality content our subscribers receive each week. Take your free trial at bloombergbriefs.com
“Ironically, if central bank ‘financial repression’ continues to work and increases
economic growth, we will likely see markedly higher bond yields by year-end
following intervention by the Fed to rein in stimulus as unemployment falls.“
1) The document discusses the events leading up to the 2007-2008 financial crisis, including the rise of subprime mortgages, collateralized debt obligations (CDOs), and credit default swaps (CDS).
2) It describes how losses in the subprime mortgage market led to the collapse of Bear Stearns in 2008 and how the Federal Reserve intervened to prevent further damage.
3) Key events that exacerbated the crisis included the bankruptcies of Lehman Brothers and the rescue of insurance giant AIG by the Federal Reserve.
Hi,Please find below the article on dividend and questions to answ.docxfideladallimore
Hi,
Please find below the article on dividend and questions to answer:
Report Information from ProQuest
April 16 2015 20:42
John B. Coleman Library
Table of contents
1. Borrowing for Dividends Raises Worries
Document 1 of 1
Borrowing for Dividends Raises Worries
Author:
Rappaport, Liz
ProQuest document link
Abstract:
Sean Maroney, director of investor relations at TransDigm, says the "stability of our business, high profit margins and consistent cash flow" give the company "the ability to support this level of leverage."
Links:
Base URL to Journal Linker:
,
Click here to order from Interlibrary Loan Illiad
Full text:
Corrections & Amplifications
Dex Media Inc. borrowed money in 2003 to pay a dividend to its private-equity owners, including Carlyle Group and Welsh, Carson, Anderson & Stowe. A Monday Money & Investing article incorrectly identified Dex Media's private-equity sponsors as Thomas H. Lee Partners, Bain Capital and funds managed by Blackstone Group.
(WSJ October 6, 2009)
Rock-bottom interest rates and thawed credit markets are emboldening some companies to use bond-sale proceeds to go on the offensive, even if that means rewarding shareholders at the expense of bondholders.
The nascent trend is controversial because corporate borrowers are sinking themselves deeper into debt to pay out special dividends, buy back stock or finance acquisitions. While such moves were all the rage during the credit boom, most corporate-bond offerings during the recession have been used to reduce debt or stockpile cash.
Eric Felder, global head of credit trading at Barclays Capital, says the lure of low rates and companies' stables of cash increases "the risk of non-bondholder friendly events."
Last week's sale of $425 million of bonds by aircraft-parts manufacturer TransDigm Group Inc. is one of the back-to-the-past corporate-bond deals causing concern among some analysts. More than $360 million of the proceeds will be used to pay a special cash dividend to shareholders and management of the Cleveland company.
The added debt increased TransDigm's borrowings to 4.3 times its earnings before interest and taxes, compared with 3.1 times before last week's deal. The expected dividend of $7.50 to $7.70 a share is equal to nearly all of the net income that TransDigm reported since the end of fiscal 2003, according to Moody's Investors Service.
Moody's said the dividend "illustrates the company's aggressive financial policy." Moody's gave the new debt a junk rating of B3, even though the ratings firm said TransDigm's "strong operating performance will enable the company to service the increased debt level."
Sean Maroney, director of investor relations at TransDigm, says the "stability of our business, high profit margins and consistent cash flow" give the company "the ability to support this level of leverage."
Borrowing from bondholders to pay shareholder dividends is "a hallmark of an earlier credit era," Jeffrey Rosenberg, head of credit strate.
Mercer Capital's Bank Watch | May 2022 | Specialty Finance AcquisitionsMercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
The document discusses how to navigate banking relationships during troubled economic times. It provides an overview of the shifts in the banking industry due to the financial crisis, including increased consolidation and losses from mortgage-backed securities and credit default swaps. It then offers advice on evaluating your bank's health, communicating proactively with your banker, understanding your loan terms and knowing when to seek other options.
Lev Finance Cov Lite article July 2014John Sweeney
The document summarizes concerns from Standard & Poor's about rising levels of covenant-lite loans, particularly 'B' rated loans. There has been a large increase in covenant-lite issuance in recent years, with over half of 2014 covenant-lite loans being 'B' rated. While covenant-lite loans have historically seen slightly lower defaults, recoveries are also slightly lower. If economic conditions deteriorate, default rates for covenant-lite and traditional loans could spike above past crisis levels, especially for 'B' rated loans which have higher inherent risk. The proliferation of risky 'B' rated covenant-lite loans leaves borrowers vulnerable if a future liquidity crisis restricts refinancing options.
This is a sample of the exclusive content subscribers to the Bloomberg Brief Mergers newsletter receive each day. Take a free trial at bloombergbriefs.com
Danish pension fund Danica is considering doubling its allocation to alternative investments such as hedge funds and private equity from $1.5 billion to $3 billion over the next few years. Currently Danica's alternative portfolio consists mainly of private equity and infrastructure funds, with $350 million in hedge funds spread across 10 single-manager funds and one multi-manager fund. The pension fund takes an opportunistic approach to hedge funds, targeting equity-like returns with half the volatility. Wells Fargo is making inroads in prime brokerage, debuting at #14 in a ranking led by Goldman Sachs, Morgan Stanley, and JPMorgan. A larger fund administrator is looking to acquire Bermuda-based Butterfield Fulcrum
Bloomberg Brief - Mergers Year End Supplement 2013Bloomberg Briefs
The document provides an overview and analysis of mergers and acquisitions (M&A) activity in 2013. Some key points:
- Total global M&A deal value was up only slightly in 2013 compared to 2012, with a single mega-deal between Verizon and Vodafone accounting for over 5% of the total value.
- The energy sector accounted for a smaller portion of deals compared to recent years, while communications deals made up a larger share, driven by telecom mergers.
- North America remained the dominant region for deals, accounting for over 40% of global activity. However, some of the largest deals involved European companies.
- Private equity firms were involved in two of
Clark Street Capital provides portfolio management solutions and operates a loan sale platform to help banks resolve troubled commercial real estate loans. The company analyzes loan portfolios, provides valuations, and markets loans to institutional buyers. While the bid-ask spread remains wide, commercial mortgage backed securities are returning and life insurance companies and regional banks have increased lending activity, though at lower loan-to-value ratios. Recovery rates on defaulted loans liquidated in 2009 averaged 59% before costs, though dropped in the fourth quarter. Regulators encourage loan workouts over foreclosure and may impose new commercial real estate concentration limits on banks.
Cracking the Vault: Challenges & Obstacles in Acquisition of Banks’ Real Estate Assets by Jon Winick, President, Clark Street Capital. Presented at GreenPearl Events' Distressed Real Estate Summit Chicago on May 13, 2010.
Threadneedle investments. inversión en bonos corporativos de mercados emerge...Observatorio-Inverco
Emerging market corporate bonds offer attractive opportunities for investors seeking higher yields. Demand for these bonds has grown as traditional fixed income investments offer very low returns and emerging market corporate fundamentals have strengthened. The asset class has experienced rapid growth, with new issuance reaching record levels in 2012. While offering relatively high yields, emerging market corporate bonds remain undervalued compared to developed market corporate bonds and sovereign emerging market bonds. The asset class is expected to continue growing as emerging market economies and corporations expand.
The document discusses how specialty finance firms have filled gaps in credit availability left by major banks since the recession. Specialty finance provides credit to consumers and small businesses through non-traditional means. It plays a critical role by extending credit to higher risk borrowers who cannot access capital through traditional banks. The document outlines different types of specialty finance like consumer loans, asset-based lending, and crowd funding that provide alternative sources of capital for borrowers and investment opportunities.
JAMIE DIMON - JP MORGAN CHASE (New York Times Article)VogelDenise
Jamie Dimon is the CEO of JPMorgan Chase, one of the largest and most powerful banks in America. However, in 2012 the bank disclosed $6 billion in trading losses, hurting Dimon's reputation as a risk manager. Still, over his career he has led the acquisition and integration of other banks like Bear Stearns and Washington Mutual to significantly expand JPMorgan Chase's business.
This report analyzes the ratings of Lloyd's of London by Fitch Ratings. Key rating drivers identified include the resilience of Lloyd's earnings in challenging market conditions, oversight of market participants by the Performance Management Directorate to improve earnings stability, and Lloyd's strong financial flexibility from diverse funding sources. The report also notes Lloyd's strong market position as a globally renowned (re)insurance market and its unique ownership structure as marginally positive factors for its ratings.
- Evergrande Group, one of China's largest real estate developers, fell into a major debt crisis with total liabilities reaching 1.97 trillion yuan.
- The crisis was caused by deteriorating cash flow, an overreliance on high-leverage financing, and aggressive diversification into unrelated industries.
- Potential countermeasures discussed include restructuring debt through negotiations, asset sales, and government support to stabilize the real estate market and prevent wider economic impact.
The article discusses the growing pains facing bitcoin as it transitions from a novelty to a mainstream currency and payment system. While startups are forming around uses like brokerages and bitcoin storage, consumers remain unconvinced of using bitcoin to buy goods and services. Regulators are also proving challenging, imposing new rules around capital gains taxes and how banks can handle bitcoins. The future of bitcoin is uncertain, as it works to match the rhetoric around its potential with real-world adoption, but some see opportunities in uses like international payments and micropayments in emerging markets.
Britain’s two-party system is being eroded by an unprecedented surge of support for smaller parties. This Bloomberg Brief report examines the implications of the most uncertain general election in a generation.
This document provides a summary of new restaurant openings and top restaurants from July 2014 to February 2015. It begins with the top 5 restaurants in London, New York, Hong Kong, and Paris from July 2014. It then discusses various new restaurants that have opened and provides recommendations for becoming a regular customer at certain restaurants to receive preferential treatment. The document also reviews Chef Bobby Flay's new restaurant Gato in New York and Heston Blumenthal's new airport cafe at Heathrow Terminal 2.
The document summarizes recommendations from a report by the American Bankruptcy Institute (ABI) commission on reforms to U.S. bankruptcy law. The ABI commission studied issues that were not contemplated in the 1978 Bankruptcy Code and proposed several changes. These include: slightly slowing the increasing speed of bankruptcy sales, restricting the use of "milestones" that require a sale within 60 days; trimming back the protections of "safe harbors" for securities transactions; and giving more protections to unions and trademark license holders in business sales.
London Dine & Wine- A Bloomberg Brief Special Supplement Bloomberg Briefs
Discover the capital's secrets in Bloomberg Brief's special supplement London Dine & Wine. Inside you will find London's 10 most important restaurants for visitors, sommelier tips for picking a good wine, and much more.
To learn more about the Bloomberg Brief Newsletters and Supplements please visit:
http://www.bloombergbriefs.com/
Welcome to the latest edition of Bloomberg Brief: Real Estate focused on the main trends in the residential and commercial markets. In this issue, former FDIC Chief William M. Isaac explains how the latest recovery differs from prior cycles and why the home price rebound has been muted. Fannie Mae’s Tom Seidenstein and Steve Deggendorf outline their expectations for credit standards in residential housing finance, and Bloomberg economist Josh Wright explains why MBS spreads won’t widen much as the Fed reins in purchases and housing agencies trim portfolios.
Then there are what Michelle Meyer, economist at Bank of America Merrill Lynch, refers to as the “Boomerang Borrowers.” These former homeowners who lost houses through a foreclosure or short sale and want to return as owners are finding that credit is harder to get. This in turn could have an impact on demand for new and existing homes. As Meyer points out, nearly 17 percent of all homeowners with a mortgage in 2006 fell into either foreclosure or short sale.
On the residential and commercial real estate finance side, the picture continues to improve. Financing costs for office and retail property borrowers have dropped thanks to lower AAA- and BBB-rated CMBS spreads. Some of the narrowing in CMBS spreads is tied to demand from investors looking for extra yield at a time when U.S. Treasury 10-year debt yields 2.36 percent and the 30-year yields just over 3 percent.
The yield hunt may also explain lower CMBS issuance. According to Jefferies’ Lisa Pendergast, a greater number of investors financed commercial property purchases and retained the loans on their own balance sheets rather than sold them. This forced participants to cut expectations for 2014 CMBS issuance. The appetite to put money to work in commercial real estate finance shows up in other ways, notably heightened use of interest-only and partial IO loans. Just over half of the mortgages resold into CMBS so far this year allowed borrowers to pay just interest, or had partial-IO characteristics.
To receive future Bloomberg Brief Real Estate Supplements please visit- http://www.bloombergbriefs.com/real-estate/
An old-media kind of guy, I still keep file folders of stories, blog entries, clippings, messages and reports printed out and more or less sorted. Back in early 2009, I started a file labeled “Hysteria’’to hold the physical evidence of what I thought the most unusual and even outlandish claims being leveled against an asset class I have spent 33 years writing about —municipal bonds. - Joe Mysak, Bloomberg Brief Editor
- Detroit won a commitment from Barclays for $275 million in financing to fund its exit from bankruptcy, if a judge approves its debt-cutting plans.
- The money from Barclays would pay off previous borrowing, creditors, and help revitalize the city.
- Detroit filed for bankruptcy unable to provide services and meet financial obligations due to decades of economic and population decline. It has since cut deals to reduce its $18 billion in liabilities.
This special supplement includes insight from leading economists and market observers about the future of home sales, what higher rates mean for affordability and what regulatory changes at the U.S. housing agencies will do to long-term fixed rate mortgages. Inside you will also find unique data on commercial mortgage issuance, CMBS loan leverage, mortgage delinquencies and commercial property cap rates, as well as insight into real estate development in Manhattan.
Reporting requirements for over-the-counter derivatives trades go into effect on Feb. 12 under the European Market Infrastructure Regulation. As companies prepare, they also look ahead to mandatory clearing and the reporting of valuation and collateral, which are set to begin in the third quarter.
The European Union's new derivatives reporting rules under EMIR go into effect on February 12, 2014. These rules require firms to report over-the-counter derivatives transactions to trade repositories. While preparations are underway, some businesses warn they may not have all systems in place by the deadline. The rules bring more regulation to the $693 trillion over-the-counter derivatives market and aim to increase transparency after the 2008 financial crisis.
Please find attached our complimentary copy of our Oil Buyer's Guide 2013 Review. This is just a sample of incredible content our subscribers receive each day. Visit bloombergbriefs.com for more information.
Please find attached our complimentary year end review from Bloomberg Brief Private Equity. This is just a sample of the incredible data available to our subscribers. Visit Bloombergbriefs.com for more information.
Bloomberg Brief produces high quality financial newsletters. Attached is our year end / outlook for Economics with our compliments. Our newsletters are subscription only but you can take a trial via our website bloombergbriefs.com
Please also find attached our Real Estate Supplement. In it you will read about how issuance of bonds backed by commercial properties is on track to beat last year's supply and yield premiums for bonds backed by commercial property loans have narrowed. Also, Jefferies CMBS veteran Lisa Pendergast says she expects CMBS spreads to narrow by year end, while Fannie Mae economists Douglas Duncan and Patrick Simmons argue that a slowdown in the growth of the labor force suggests more modest prospects for the demand for new housing and construction. Emile J. Brinkmann, the chief economist of the Mortgage Bankers Association of America, probes how state regulations will affect the pace of foreclosures and delinquencies. Nicolas Retsinas of Harvard’s Joint Center for Housing has some advice for lawmakers on GSE reform and Donald Trump offers a characteristically confident view that the recovery in real estate. If you have any comments or feedback for future real estate issues please contact arozens@bloomberg.net.
Growth is expected to modestly accelerate in the US in Q3 2013 following sub-2% growth in the first half of the year. Key factors that will influence growth include the household deleveraging cycle, policy decisions around sequestration, manufacturing trends, expectations of Fed policy, and the impact of rising rates on housing. The unemployment rate is expected to continue moving toward 7% as job growth holds around 175,000 per month. The Fed will likely begin tapering asset purchases in September and maintain low rates until 2015.
Private equity firms are targeting the $3.6 trillion 401(k) market as a new source of growth amid lackluster fundraising. Firms like Blackstone, KKR, and Carlyle are developing products tailored for individual investors with lower minimums in an effort to gain access to retirement plans. However, adding alternative investments like private equity to 401(k)s faces challenges around fees, liquidity, and fiduciary responsibility for employers.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
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3. 01.03.13 www.bloombergbriefs.com Bloomberg Brief | Leveraged Finance 3
high-yield bond outlook
Loosening Standards, Falling Returns: Watch Out for Blowups in 2013
After last year’s record junk bond issuance volume and robust returns in both the U.S. and Europe, investors and strategists are cautious
about the 2013 outlook for high yield. Lower-rated credit is most at risk and the asset class may be poised for its first loss since 2008.
What is the outlook for high-yield bond returns and issuance this year?
Gershon Distenfeld
AllianceBernstein
Senior Vice President
“The quality of the issuance is starting to deteriorate and this has the potential to accelerate in 2013. I don’t think
that many investors are paying enough attention to covenants and other deal structure characteristics such
as call protection. When you have a market that’s starving for paper, investors tend to loosen their standards,
especially in a market where it seems as though every deal is five times oversubscribed. This is not the type of
environment where you want to stretch for extra return because you’re not compensated for the inherent risk.
We’re underweight triple Cs and staying that way. We don’t see a lot of value there.
There is still a decent amount of debt that is becoming callable for the first time in 2013, so we will still see some
volume but it will likely be off from the torrid pace of the past few years.”
Marty Fridson
FridsonVision
CEO
“The consensus forecast is return close to the coupon level, which in practice has rarely happened. The histori-
cal record indicates that there has been a 91 percent probability that the return will be outside the range of the
coupon, plus or minus 200 basis points. It looks very unlikely to be on the upside.
I think we’re looking at a sub-average year, possibly going into negative territory, with the Treasury outlook be-
ing a factor. High yield has tended to return worse than Treasuries when it’s as over-valued as it is. We’ve been
through five months that the spread has been tighter than fair value, and it seems unlikely that we go through
another 12 months.”
Sabur Moini
Payden & Rygel
Portfolio Manager
“I don’t see yields going much lower. With the yield close to 6 percent, high yield isn’t probably going to do a lot
better than that. It’s tough to say we’re bullish on high yield right now because it’s had such a good run over the
last three or four years. [2013] will be more of a credit picker’s market. [This] year is going to be a market where
there are a few blowups. Right now, you’re not getting paid to go into CCCs or CCs. I’d rather own a single B at
6 percent than a CCC at 7.5 percent. BBs are pretty tight. CCCs you can get more yield, but again there is a lot
more default risk and volatility.
I think you can still have a good year, it’s just not going to be a 13, 14, 15 percent type year. To say this market
will generate a flat return next year, it seems a little implausible. Could it be below 7 percent? Sure.”
Michael Henry Anderson
Citi
Credit Strategist
“You basically have had this big rally in middle-of-the-road assets, whether it’s investment grade, double Bs,
single Bs. Yields are just so low that those assets are going to get hit pretty hard if we get volatility or a move in
one direction. As long as the Fed is successful in keeping rates low and growth is moderate, those assets will
do OK but volatility is a big risk. One source we might get some net supply from is fallen angels. There are some
large fallen angels out there that investors might find in their benchmarks next year.
There’s a lot of interest in the loan market, given the fact that yields on high yield are at all-time lows. At some
point loans are going to outperform. We just don’t think it’s going to happen in 2013. With 80 percent of the loans
above 99, you’re not going to get that multi-point pop in a whole lot of loans.”
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
4. 01.03.13 www.bloombergbriefs.com Bloomberg Brief | Leveraged Finance 4
leveraged loan outlook
Loans May Outperform, Investors Say; CLO Issuance Forecast to Rise Again
Leveraged loans may provide better returns next year than high-yield bonds, according to investors. The middle market is expected to
see issuance activity, while CLO issuance is forecast to grow after a revival in 2012.
What is the forecast for returns and issuance of loans and CLOs in 2013?
Erik Falk
KKR
Co-Head of Leveraged Finance
“If five-year Treasuries back up 100 basis points, then loans have a very good chance of outperforming bonds.
The Fed doesn’t have to move short-term rates for the market to believe longer-term inflation will come out.
The space whch I believe will have a decent amount of activity is the middle market. A lot of those companies
have not gone through the extension process of their current debt. The difference is that you put it in the tens of
billions, not the hundreds of billions.”
Beth MacLean
Pimco
Portfolio Manager
“If absolute spreads get too tight I think you’ll start seeing waning investor interest. Definitely the CLO arb gets
really difficult if spreads get much tighter than we’ve seen in the last couple weeks. I hope it puts a floor on how
much we can see in terms of refinancing and spread tightening. On a relative basis we still think loans are going
to be a pretty attractive option for people looking for yield in 2013.
I think it’s a matter of the PE guys finding the right opportunity and right now there just doesn’t seem to be a
tremendous amount of M&A backlog in the pipeline unfortunately. But I think the market would embrace that.”
Greg Stoeckle
Invesco
Portfolio Manager
“2013 marks a year where a large component of the pre-crisis CLOs hit the end of their reinvestment periods.
While you have new capacity being created through new CLOs, you’re going to have capacity taken out of the
market as the legacy CLOs begin to go dormant. I think that’s a very interesting dynamic that will help shape the
market in 2013.
The CLOs running off, shrinking in size will create capacity for new CLOs, but I think it also creates balance in
the supply-demand dynamic of the market as well. I think $50 billion is eminently doable for next year.”
2013 Sell Side Analyst Predictions
bonds LOANS
Issuance Return Default Rate Spread ISSUANCE RETURN DEFAULT RATE SPREAD CLOS
BAML $275bn 7.20% 2.50% 475bp $350bn 6.30% 2.50% 490bp
Barclays $275-300bn 4-6% 3.50% $225-250bn 3.5%-5.5% 2.5%-3.5% $60-75bn
Citi $325-350bn 7% 2.50% 475bp
Credit Suisse $330bn 7% 1%-2% $230bn 5.50% 1%-4%
JPMorgan $275bn 7-8% 2.00% 560bp $300bn 5-6% 2.00% 475bp $65-70bn
Morgan Stanley $283bn 3.10% 3.60% 577bp $299bn 5.00% $60bn
RBS $315bn 9%
Deutsche Bank $290bn 7-8% 3-3.5% 450bp $300bn 7-8% 425bp
Wells Fargo $350bn 6-7% 3.25% 500bp
UBS $300bn 7.50% 1.5-3% 500bp
2012 $350bn 15.6% 3.2% 550bp $300bn 10.5% 1.30%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
5. 01.03.13 www.bloombergbriefs.com Bloomberg Brief | Leveraged Finance 5
U.S. Bonds
Yield to Worst Hits All-Time Low; Bond Issuance Volume at Historic High
25.00 2500
Spread To Worst Yield to Worst
20.00 2000
Spread To Worst (bps)
Yield To Worst (%)
15.00 1500
10.00 1000
5.00 500
0.00 0
1/3/97 3/13/98 5/28/99 7/28/00 9/28/01 11/29/02 1/30/04 4/15/05 6/16/06 8/17/07 10/17/08 12/18/09 3/4/11 5/11/12
Source: Bloomberg
High-Yield Bond Volume Sets New Record $m Month-to-Month Issuance
60 100
350000 Total Volume # Deals Closed
$354bn 90
Total Issuance Volume USD Billions
300000 50
80
250000 70
40
60
200000
2012 2011 2010 30 50
150000 40
20
30
100000
20
10
50000
10
0 0 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec J-10 A-10 J-10 O-10 J-11 A-11 J-11 O-11 F-12 M-12 A-12 N-12
Source: Bloomberg Source: Bloomberg
Bloomberg Brief publishes 18 groundbreaking daily and weekly newsletters.
For the full list of titles visit www.bloombergbriefs.com or BRIEF <GO> on your Bloomberg terminal
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
8. 01.03.13 www.bloombergbriefs.com Bloomberg Brief | Leveraged Finance 8
U.S. Bonds
Average Tenor Falls, Coupon Rises; Triple C Issuance Volume Jumps
%/Years Average Junk Bond Coupon Rises, Tenor Falls B1 Rated Bonds Dominate Issuance by Rating
8.5 60
Caa3 2012
8.3
2011
50 Caa2
8.1 2010
7.9 Caa1
40
7.7 B3
7.5 30 B2
7.3 B1
20
7.1 Ba3
6.9 Amount issued (Right Axis, $bn) 10 Ba2
6.7 Average Coupon (Left Axis)
Ba1
Average Tenor (Left Axis)
6.5 0
J-12 F-12 M-12 A-12 M-12 J-12 J-12 A-12 S-12 O-12 N-12 D-12 $0 $20,000 $40,000 $60,000 $80,000 $100,000
Source: Bloomberg Source: Bloomberg millions
Energy Sector Sees Biggest Year-on-Year Increase Energy Sector Issuance by Use of Proceeds
$70
Repay/Refinance
2012 $57,568 $60
GCP/CAPEX
Basic Materials M&A
Energy $50
Communications
Billions
Consumer, Cyclical $40
2011 $42,178 Consumer, Non-cyclical
Diversified $30
Energy
Financial $20
Industrial
2010 $37,380
Technology $10
Utilities
$0
$0 $100,000 $200,000 $300,000 $400,000 2010 2011 2012
Source: Bloomberg millions Source: Bloomberg LP
JPMorgan Tops 2012 U.S. Junk Bond Underwriter Ranking
underwriter RANK MARKET SHARE AMOUNT ($BN) Weighted Av. FEES (%) dEAL COUNT
JPMorgan 1 11.5 40.3 1.5 326
BAML 2 11 38.8 1.5 324
Credit Suisse 3 9.1 31.9 1.4 231
Deutsche Bank 4 8.8 31.0 1.3 236
Citi 5 8.8 31.0 1.3 245
Goldman Sachs 6 8.1 28.4 1.3 203
Source: Bloomberg LP. LEAG44 <GO>
MANAGE YOUR EQUITY PORTFOLIOS AND RISK
WITH THE LATEST DESKTOP APPLICATION
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
9. 01.03.13 www.bloombergbriefs.com Bloomberg Brief | Leveraged Finance 9
U.S. Bonds
Junk Bond Returns Exceed High Grade, Driven by Triple Cs; Fund Inflows Dwindle
Total Junk Beats High Grade, Government Bonds in 2012 Total Triple C Credit Performs Best Since 2009
Return % Return %
30 95
85
25 BBs
75
Bs
20 65
CCCs or Lower
55
15 High Yield Index
45
10 35
25
5 15
5
0
Euro High Yield Global High U.S. High Yield High Grade Govt Bonds MSCI World -5
Yield 2009 2010 2011 2012
Source: Bloomberg Source: Bloomberg LP
Total Return % Bond, Loan Returns Expected to Drop $m U.S. Bond Fund Flow Turns Negative at Year End
16 3000
2012 Actual
14
2013 Forecast
2000
12
10
1000
8
INFLOW
6 0
4 OUTFLOW
2 -1000
0
High-Yield Bonds Leveraged Loans -2000
Average bond return forecast from Morgan Stanley, Citi, JPM, BAML, RBS, Credit Suisse,
Deutsche, Wells Fargo, UBS. Loan forecasts from Morgan Stanley, Citi, JPM, BAML, -3000
Credit Suisse, Deutsche. 1/1 2/1 3/1 4/1 5/1 6/1 7/1 8/1 9/1 10/1 11/1 12/1
Source: Bloomberg LP Source: EPFR Global
CIT Group Leads Junk Bond Issuer Ranking by Proceeds in 2012
Issuer Rank Market Share(%) Amount ($bn) Weighted Av. Fees (%) deal count
CIT Group 1 2.8 9.8 0.942 7
Clear Channel 2 2 6.9 - 5
Sprint Nextel 3 1.7 6.1 1.5 5
HCA Holdings 5 1.4 4.9 1.125 4
Reynolds 6 1.3 4.5 - 2
DISH Network 7 1.3 4.4 - 4
Source: Bloomberg LP LEAG44<GO>
WHERE ARE US INTEREST RATES HEADING?
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10. 01.03.13 www.bloombergbriefs.com Bloomberg Brief | Leveraged Finance 10
U.S. Bonds — CDS Watch Bloomberg Data
Centex, Nextel Credit Best in 2012; JC Penney, RadioShack Underperform, CDS Show
Best Performers
Centex Corp.
Nextel Comm. Inc.
Energy Future Holdings Corp.
Sprint Nextel Corp.
Ally Financial Inc.
Dole Food Co. Inc.
L-3 Comm Corp. (Sub.)
PulteGroup Inc.
Neiman Marcus Group Inc.
Beazer Homes USA Inc.
International Lease Finance Corp.
GenOn Energy Inc.
Standard Pacific Corp.
Community Health Systems Inc.
DDR Corp.
KB Home
USG Corp.
Avis Budget Group Inc.
Host Hotels & Resorts LP
Avis Budget Car Rental LLC/Finance Inc.
-80.00% -70.00% -60.00% -50.00% -40.00%
Worst Performers
JC Penney Co. Inc.
RadioShack Corp.
Best Buy Co. Inc.
Edison Mission Energy
Albertsons Inc.
Advanced Micro Devices
Texas Competitive Elec. Hldgs Co. LLC
Navistar Int'l. Corp.
Windstream Corp.
Chesapeake Energy Corp.
Peabody Energy Corp.
SUPERVALU Inc.
Ltd Brands Inc.
Toys R Us Inc.
Health Net Inc.
Rite Aid Corp.
Goodyear Tire & Rubber Co.
DPL Inc
AES Corp.
American Axle & Mnfg. Inc.
-50.00% 0.00% 50.00% 100.00% 150.00% 200.00% 250.00%
Source: Bloomberg LP WCDS <Go>
The chart shows the largest percentage movers for the Jan. 1-Dec. 13 2012 period in single name five-year CDS for U.S.- based issuers rated BB+
through C by Fitch and priced by CMA Datavision. CDS prices are bid-ask midpoint of CMA end-of-day New York trading levels. When applicable, they
are converted from points upfront.
— Lee Zeltser, Jeff Schiller, Bloomberg Data Analysts
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11. 01.03.13 www.bloombergbriefs.com Bloomberg Brief | Leveraged Finance 11
U.S. Bonds — Total Returns By Sector Bloomberg Data
Banks were the best performing sector in Bank of America Merrill Lynch’s U.S. high-yield index[1], with a 28 percent gain. This was fol-
lowed by the insurance and real estate segments, with total returns of 25 percent and 24 percent, respectively. The worst returns were
seen in environmental, metals/mining and food & drug retail junk bonds. Triple C rated bonds beat the index, with a 19.6 percent gain,
while the other rating categories underperformed. The market overall had its best year since 2009, with a 15.35 percent return.
— Lee Zeltser, Jamie Dranoff, Bloomberg Data Analysts
Bank Of America Merrill Lynch US High Yield Master II Index-Sector Returns December 13, 2012
Total Return, % [2,3]
BAML BAML
Sector YTW (%) OAS
Ticker Credit Rating 2012 [1] 2011 2010 2009
Gaming H0AG B3 7.77 712 15.86 3.67 20.60 59.11
Telecommunications H0TC B1 5.77 475 19.61 2.70 14.17 46.75
Entertainment H0ET B3 5.19 474 13.73 6.27 12.46 55.81
Utilities H0EL B1 8.47 761 11.46 6.89 4.20 28.16
Railroad H0RA CCC1 7.56 673 14.51 6.11 13.85 31.52
Real Estate H0HB B1 4.70 397 23.86 -0.34 19.85 87.19
Containers H0CT B2 5.56 472 15.07 6.27 11.50 35.48
Financials H0FI B1 5.09 441 17.12 3.31 26.35 118.85
Food & Drug Retail H0FR B3 7.20 631 7.40 14.53 6.23 57.81
Food/Beverage/Tobacco H0FO B1 5.41 466 13.96 5.45 13.48 39.86
Hotels H0AH BB2 3.57 266 11.70 7.22 12.44 42.08
Leisure H0LE B1 4.77 415 13.67 9.13 19.04 63.73
Restaurants H0RE B3 6.36 567 16.73 7.10 12.70 64.07
Building Materials H0BL B1 5.55 476 19.42 0.75 13.01 69.56
Broadcasting H0BR B3 7.89 706 18.97 1.80 23.73 197.60
Cable TV H0CV B1 4.64 376 11.41 10.09 11.36 30.72
Capital Goods H0CA B1 4.91 427 12.85 6.06 16.23 46.31
Aerospace H0AE B1 5.95 522 11.43 4.32 14.02 35.85
Steel H0ST BB2 6.43 522 13.16 2.40 14.76 74.27
Consumer Products H0CO B2 5.98 510 13.06 4.06 13.05 59.09
Transportation H0SH B3 10.62 993 17.10 -5.99 19.58 70.69
Energy H0EN B1 5.75 481 11.50 8.51 12.95 51.14
Textiles/Apparel H0TE B1 4.62 385 13.83 6.39 14.46 66.60
Healthcare H0HL B2 5.61 474 14.44 7.16 11.65 42.22
Metals/Mining H0ME B1 6.93 613 6.82 3.70 15.75 52.37
Airlines H0AI B1 6.36 570 16.91 -2.37 21.03 70.52
Services H0SE B2 6.26 550 14.80 5.70 12.81 76.04
Automotive H0AU B1 5.77 500 16.50 7.05 17.82 63.85
Environmental H0EV B2 6.66 571 9.42 6.35 14.86 43.22
Super Retail H0SR B1 6.08 521 12.93 4.76 12.41 77.39
Paper H0PA BB3 5.90 484 16.52 -1.77 15.17 51.83
Media H0DM B2 6.43 541 11.90 5.83 13.90 65.41
Chemicals H0CH B1 6.19 520 15.54 4.11 17.33 62.82
Publishing H0PU B1 10.06 949 10.41 -6.02 15.37 80.39
Banks H0BA BB3 5.59 467 28.13 -4.10 21.16 73.15
Technology H0TY B2 7.29 640 15.89 5.43 15.37 87.11
Insurance H0IN BB3 7.84 675 25.38 1.12 40.91 121.60
BBs H0A1 BB2 4.63 369 14.33 6.12 14.93 45.21
Bs H0A2 B2 5.85 503 14.77 4.65 13.99 47.64
CCCs H0A3 CCC2 10.52 973 19.58 -1.40 18.42 96.79
US High Yield Master II H0A0 B1 6.13 527 15.35 4.38 15.19 57.51
Source: Bank Of America Merrill Lynch Bond Indices
Notes:
1) Year to Dec. 13.
2) Monthly and YTD performance data is as of last fully completed monthly period.
3) Green/red color coding represents performance ranking of the top/bottom 3 sectors in the period.
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12. 01.03.13 www.bloombergbriefs.com Bloomberg Brief | Leveraged Finance 12
Western european Junk Bonds
Average Coupon Trends Higher; Volume Revives, Driven by CCC Rated Issuance
Average High-Yield Bond Coupon Rises Euro, Bn Issuance Volume by Credit Rating
9 50 14
CCC+
8 45
B
40 12
7 B-
Avergae Coupon, % (line)
35
Volume, Eur Bn, (bars)
6 10 B+
30
5 BB
25 8
BB-
4
20 BB
3 6
15 BB+
2 10 C
4
1 5 CC
2 CCC-
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 CCC
0
2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012
Source: Bloomberg Source: Bloomberg
Financial Issuance Volume Falls, Corporate Rises Luxembourg Dominates Junk Volume by Country
14
70
CORPORATE
FINANCIAL 12
60
10
50 2011 2012
Eur (Bln)
Eur (Bln)
8
40
6
30
4
20
2
10
-
0 United Luxembourg Germany Spain Portugal Italy France
2007 2008 2009 2010 2011 2012 Kingdom
Source: Bloomberg Source: Bloomberg
Leveraged Finance
Proprietary Data. Deep Analysis. Expert Insight.
Bloomberg BRIEF Leveraged Finance is a new, groundbreaking publication for the leveraged loan and junk bond
market, published by Bloomberg, the premier source of data and analytics in the financial world.
We turn knowledge into insight — when you need it — with intelligence you can act on. Your time is valuable. Maximize it
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13. 01.03.13 www.bloombergbriefs.com Bloomberg Brief | Leveraged Finance 13
U.S. Loans
Volume Accelerates, Fueled by Refinancing; Returns Pick Up
bn Institutional Issuance Tops 2011, Total Volume Lags Leveraged Loan Returns Rebounded in 2012
25%
$600
Pro-Rata 20%
$500
Institutional 15%
$400 10%
Total Return
5%
$300
0%
$200
-5%
$100 -10%
-15%
$0 1/11/11 4/11/11 7/11/11 10/11/11 1/11/12 4/11/12 7/11/12 10/11/12
2009 2010 2011 2012 JPM Leveraged Loan Index S&P 500 Equity Index JPM HY Domestic Bond Index
Source: Bloomberg Source: Bloomberg LSRC <GO>
Refinancing Deals Dominate Leveraged Loan Issuance Margin Per Turn of Leverage at Close
$180 700 First Lien Loans: Jan 2011 - Dec 2012
600
$160
Average 1L Spread at Close (bps)
600 Average Spread at Close Min bps per Turn
$140 Average bps per Turn Max bps per Turn
Issuance USD (Billions)
500 500
Spread in Basis Points
$120
$100 400
400
$80 300
$60 300
200
$40
100 200
$20
$0 0
Q1-07
Q2-07
Q3-07
Q4-07
Q1-08
Q2-08
Q3-08
Q4-08
Q1-09
Q2-09
Q3-09
Q4-09
Q1-10
Q2-10
Q3-10
Q4-10
Q1-11
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
Q3-12
Q4-12
100
0
NR CCC B BB Loans Used to Refi Debt Average Spread at Close (bps) BBB- BB BB+ BB- B+ B
Rating at Close
Source: Bloomberg LSRC <GO> Source: Bloomberg LSRC <GO>
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14. 01.03.13 www.bloombergbriefs.com Bloomberg Brief | Leveraged Finance 14
U.S. Loans
Ford Motor Leads Ranking of Biggest Leveraged Loans in 2012
Borrower Tranche Size ($bn) Tenor Current Margin Use of Proceeds Sector
Ford Motor 9.0 3.71 225 Refinance Debt Consumer Discretionary
Clear Channel Comms 7.7 3.26 365 Refinance Debt Communications
Kinder Morgan 6.8 1.29 300 Acquisition Energy
Sealed Air 6.4 3.88 250 Working Capital Materials
ARAMARK 5.2 4.41 337.5 Refinance Debt Consumer Staples
Kinder Morgan 5.0 3.29 350 Acquisition Energy
Sabine Pass Liquefaction 3.6 7.00 350 Development/Construction Energy
Chesapeake Energy 3.0 5.56 700 Refinance Debt Energy
Plains Exploration 3.0 5.00 300 Acquisition Energy
Infor/Lawson Software 2.8 5.52 400 Refinance Debt Technology
Infor/Lawson Software 2.8 6.00 500 Merger Technology
International Lease Finance Corp 2.3 3.00 325 Refinance Debt Financials
Reynolds Group Holdings 2.2 6.00 375 Refinance Debt Consumer Staples
Cequel Communications 2.2 7.00 300 Dividend Payment Communications
First Data Corp 2.2 5.03 500 Refinance Debt Technology
Fidelity National Information Services 2.1 5.00 200 Refinance Debt Technology
EP Energy 2.0 5.00 175 LBO Energy
HCA 2.0 4.07 150 Refinance Debt Health Care
Energy Transfer Equity 2.0 5.01 300 Acquisition Energy
Ineos US Finance 2.0 6.00 525 Refinance Debt Materials
Source: Bloomberg LP
Cequel Tops Ranking of Loan Issuance for Dividend Payment
Borrower Tranche Size ($m) Tenor Margin LIBOR Floor Sponsor
Cequel Communications 2,200 7.00 300 100 Goldman Sachs/Quadrangle/Oaktree
BJ's Wholesale Club 1,300 7.00 450 125 CVC/Leonard Green
Booz Allen Hamilton 1,250 7.00 350 100 Carlyle
Kronos 1,210 7.00 425 125 Hellman & Friedman/JMI Equity
Attachmate 1,100 5.51 575 150 Francisco Partners/Golden Gate/Thoma Bravo
Lone Star Intermediate Super Holdings 1,000 7.50 950 150 Madison Dearborn/Providence Equity/Welsh Carson
West Corp 970 5.88 450 125 Quadrangle/Thomas H Lee
AdvancePierre Foods 925 4.75 450 125 Oaktree Capital
Endurance International Group 800 7.00 500 125 GS Capital/Warburg Pincus
Harbor Freight Tools USA 750 5.50 425 125 -
Source: Bloomberg LP
Chesapeake Dominates Covenant-Lite Leveraged Loan Issuance
Borrower Tranche Size ($bn) Tenor Current Margin Use of Proceeds Sector
Chesapeake Energy 3.00 5.56 700 Refinance Debt Energy
Ineos US Finance 2.00 6.00 525 Refinance Debt Materials
Chesapeake Energy 2.00 5.06 450 Refinance Debt Energy
Bausch & Lomb 1.94 7.00 425 Refinance Debt Health Care
Getty Images 1.90 7.00 325 LBO Communications
ADS Waste Holdings 1.80 7.00 400 Acquisition Industrials
SUPERVALU 1.65 5.00 200 Refinance Debt Consumer Staples
Arch Coal 1.40 6.00 450 Refinance Debt Energy
BJ's Wholesale Club 1.30 7.00 450 Refinance Debt Consumer Staples
US Foods 1.24 4.82 425 Refinance Debt Consumer Staples
Source: Bloomberg LP
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